All articles tagged with #defence spending
Chancellor John Healey will announce a 'new age of industrialisation' at the Labour conference, centering on a £6bn UK-only contract for three floating docks at Faslane. The move aims to boost domestic shipbuilding and defense capabilities, though critics question the funding source ahead of the October Budget.
UK Chancellor John Healey is weighing joining the Canada-led Defence, Security and Resilience Bank (DSRB), a multilateral lender that would provide cheaper loans to fund defence projects. Membership would require roughly £870m upfront over three years and could boost defence spending beyond current plans, though a decision has not yet been made; former chancellor Rachel Reeves reportedly rejected the idea.
NATO chief Mark Rutte warns Moscow’s reckless attacks on Ukraine are a threat to life, but say they will strengthen Europe’s resolve to back Kyiv and increase defence spending, signaling a move toward greater European security autonomy with continued US support; the live blog also covers related European political and economic developments, including the ECB’s rate rise and security concerns near Ukraine.
Andy Burnham used his first Commons appearance as prime minister to push greater devolution (including a Cornwall deal and plans to discuss more powers with Scotland, Wales, and Northern Ireland), signal a defence-spending push with a 3% of GDP target to be set at the next spending review, confirm attendance at COP31 to tackle climate change, pledge to bring forward a Commonhold and Leasehold Reform Bill, and paid tribute to predecessor Keir Starmer.
The US is weighing measures to press Britain to increase defence spending as part of Nato burden-sharing, potentially using Falklands sovereignty as leverage; Washington says it remains neutral on who governs the islands, but officials say the Falklands review could shape how closely the UK commits to Nato 3.0 and lasting European security, with talks linking the issue to the upcoming UK budget and defence commitments.
The government announced £8.4bn to advance the Dreadnought-class nuclear submarines as part of a £63.6bn Defence Nuclear Enterprise, aiming to replace Vanguard boats and protect Britain for decades while supporting about 47,000 current jobs (rising to 65,000 by 2030) and 22,000 apprenticeships, with Barrow-in-Furness highlighted for regional economic benefits amid broader debates on defence spending targets and funding.
Now chancellor, John Healey must deliver on his defence funding promises after resigning as defence secretary over Treasury constraints and a delayed, underfunded Defence Investment Plan; reaching 3% of GDP by 2030 would require about £17.3bn more annually (roughly £90bn defence budget by 2030), risking tax rises or new funding methods as key programmes like drones and long-range weapons remain underfunded.
Andy Burnham becomes the UK’s prime minister after Labour leader Keir Starmer resigns, inheriting a stagnant economy with limited fiscal room, a fragile bond market, and a Labour base that has drifted in polls; his challenges include balancing defence spending with welfare, possibly expanding North Sea drilling, navigating tense UK-China and US relations, refining Gaza diplomacy, and countering Reform UK’s rise while trying to translate policy into tangible improvements for ordinary voters.
At NATO’s Ankara summit, leaders pledged more than €70 billion to Ukraine and over $50 billion in new procurements, reaffirmed Article 5, and signaled unity on Ukraine policy, but US President Donald Trump publicly attacked allies over defense spending and threatened a Spain embargo, underscoring ongoing strains. He also floated lifting sanctions on Turkey and potential F-35 sales, while Europe pushes for greater defense autonomy and a new UK–Netherlands maritime partnership, leaving experts to warn that NATO unity remains fragile and dependent on US commitments.
At a NATO summit in Ankara, US President Donald Trump attacked Spain as a 'wasted cause' and a 'terrible partner' and threatened to cut trade, while reviving his long-standing push to have Greenland belong to the US instead of Denmark. Spanish Prime Minister Pedro Sánchez said relations with the US are positive and highlighted Spain’s defense commitments (2% of GDP in 2025) and its refusal to host US bases at Morón and Rota. Trump argued that NATO allies owe the US more for security, reiterated Greenland’s strategic importance to the US, and noted that Denmark and Greenland say Greenland is not for sale. The EU stressed mutual trade benefits with the US, and all 32 NATO members pledged their commitment to Article Five.}
Canada has selected Germany’s TKMS to build 12 diesel-powered, Arctic-capable submarines, with about four planned by 2034, marking Ottawa’s biggest defence push and a shift closer to Europe. The deal includes joint German–Norwegian collaboration, logistics and maintenance, and could be scuppered if negotiations fail, in which case Ottawa would consider Hanwha Ocean; the decision comes amid NATO security concerns and debates over long-term defence spending and US-Canada ties.
Canada selected German firm TKMS to build a 12‑submarine fleet in the largest defence procurement in its history, with negotiations to sign a contract and no cost disclosed. Prime Minister Mark Carney said the deal would boost industrial capacity and Arctic sovereignty as Canada raises defence spending to 2% of GDP (aiming for 5% by 2035) and strengthens ties with Europe through a NATO-aligned partnership with Norway on a low‑risk, multi‑year program designed to keep three submarines reliably operational at once.
Japan’s Mitsubishi Heavy Industries chief Eisaku Ito warns that converting idle car factories into drone production would be a costly mistake, arguing that drone specifications constantly change and car plants aren’t built to produce low-volume, highly variable military systems; he envisions MHI playing a central, flexible role in Tokyo’s drone push as defence budgets rise and the Shield coastal defence programme seeks to deploy thousands of unmanned aircraft.
Kemi Badenoch grills Keir Starmer at PMQs over the defence investment plan, accusing him of leaving a £5bn funding shortfall for Andy Burnham to cover; Starmer defends the plan as a £300bn, four-year upgrade—the largest defence increase in 40 years—funded by identified savings and headroom from the Budget, as Ed Davey pushes for a stronger missile defence.
Britain's long-awaited Defence Investment Plan pledges £298bn over the next four years—£15bn more than previously and the biggest uplift since the Cold War—yet critics say it underfunds defence at about 2.7% of GDP by 2030 (NATO target 3%). The plan pivots toward cheaper, autonomous systems and drones, with £63bn for the nuclear deterrent, £8bn for a UK-led next-generation RAF stealth aircraft, and a push to hybrid crews. It also funds replenishing Ukraine aid (£11bn), air/missile defence (£790m), and protection of undersea cables (£330m). The Army grows to ~76,000; some programmes are cut (e.g., Type 83 destroyers, Storm Shadow replacement), and expansion of Cadets is delayed.